22nd Century Group Announces Major Scientific Collaboration with University of Virginia

CLARENCE, N.Y.–(BUSINESS WIRE)– 22nd Century Group, Inc. (NYSE MKT:XXII),
a plant biotechnology company that is a leader in tobacco harm
reduction, announced today that the Company has entered into a sponsored
research agreement with the University of Virginia (“UVA”) and an
exclusive license with the University of Virginia Patent Foundation
d/b/a University of Virginia Licensing & Ventures Group (“UVA LVG”).
Over the next three years, the Company will invest approximately
$1,100,000 in this major scientific collaboration with UVA. The goals of
the research agreement include: (i) creating unique industrial hemp
plants with guaranteed levels of THC below the legal limits (thus
eliminating the risk to growers of having to destroy non-conforming hemp
crops) and (ii) optimizing other desirable hemp plant characteristics to
improve the plant’s suitability for growing in Virginia and in similar
legacy tobacco regions.

This groundbreaking alliance will also involve the development and study
of medically important cannabinoids to be extracted from the Company’s
unique hemp plants. UVA and 22nd Century will conduct all activities in
this scientific collaboration within the parameters of state and federal
licenses and permits held by UVA for such work. These landmark
agreements grant 22nd Century exclusive rights to commercialize all
results of the collaboration in consideration of royalty payments by the
Company to UVA LVG.

22nd Century has now solved one of the most significant problems that
has plagued U.S. research on industrial hemp plants. Currently, the only
hemp plants available in the U.S. for research and development are
either (i) plants from Canada that are small in size and unsuitable for
fiber production or other industrial uses, and (ii) “research only”
plant material from Europe, which limits researchers to one plant
generation, except only under onerous terms from European suppliers
(which makes such plants virtually useless for research and development
of improvements). By contrast, 22nd Century has established an exclusive
network of fully licensed, legal owners and growers of industrial hemp
plants in the U.S. who have agreed to provide research, development and
commercialization rights to the Company. Accordingly, 22nd Century will
provide superior plant materials to UVA for use in this unique
collaboration. In fact, the specially-selected starting plant materials
already exhibit highly desirable traits and characteristics which 22nd
Century believes will significantly accelerate production of viable,
reliably true-breeding industrial hemp in the U.S.

Dr. Michael Timko, the principal scientific investigator at UVA for this
project, stated, “We are very excited by the groundbreaking
opportunities afforded by this important collaboration with 22nd
Century. We believe that this partnership will yield great results for
the Commonwealth of Virginia and its agricultural and medical
industries. UVA looks forward to becoming a leader in Virginia in these
fields.”

Dr. Paul Rushton, the Vice President of Plant Biotechnology for 22nd
Century, remarked, “We share UVA’s enthusiasm for our new collaboration.
22nd Century also looks forward to entering into additional scientific
alliances with other academic and scientific research institutions. The
unique new plants and intellectual property being developed and
protected by 22nd Century will continue to advance our Company’s
position in the emerging legal medical marijuana and industrial hemp
markets.”

About 22nd Century Group, Inc.

22nd Century is a plant biotechnology company focused on technology
which allows it to increase or decrease the level of nicotine in tobacco
plants and the level of cannabinoids in cannabis plants through genetic
engineering and plant breeding. The Company’s primary mission is to
reduce the harm caused by smoking. 22nd Century currently owns or
exclusively controls more than 200 issued patents and more than 50
pending patent applications around the world. Visit www.xxiicentury.com
and www.botanicalgenetics.com
for more information.

Cautionary Note Regarding Forward-Looking Statements: This
press release contains forward-looking information, including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of 22nd Century Group, Inc., its
directors or its officers with respect to the contents of this press
release, including but not limited to our future revenue expectations.
The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,”
“believe,” “intend” and similar expressions and variations thereof are
intended to identify forward-looking statements. We cannot guarantee
future results, levels of activity or performance. You should not place
undue reliance on these forward-looking statements, which speak only as
of the date that they were made. These cautionary statements should be
considered with any written or oral forward-looking statements that we
may issue in the future. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any
of the forward-looking statements to conform these statements to reflect
actual results, later events or circumstances, or to reflect the
occurrence of unanticipated events. You should carefully review and
consider the various disclosures made by us in our annual report on Form
10-K for the fiscal year ended December 31, 2015, filed on February 18,
2016, including the section entitled “Risk Factors,” and our other
reports filed with the U.S Securities and Exchange Commission which
attempt to advise interested parties of the risks and factors that may
affect our business, financial condition, results of operation and cash
flows. If one or more of these risks or uncertainties materialize, or if
the underlying assumptions prove incorrect, our actual results may vary
materially from those expected or projected.

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